<p>OK, I have noticed this year that a lot of the people from my school whose parents have said a bit and that are applying to the top 100 or so national universities and the top 50 or so LACs with middle incomes (around 60-80K) are being killed in the EFC department. Which leads me to question if saving a consideral amount is worth it? Say you have a family income of 65k/yr. and over the years they have saved about 55k for your education and you plan on going to that top 50 LAC for about 40k/yr. If you dont get a merit scholarship would that money you saved be more of a hassle than asset? I am one of those kids in that middle income who had parents that didnt save and when I applied to that top 50 LAC (close to 36k/yr. cost) I was given 30k in grants before I even received my merit award... is this a typical situation?</p>
<p>Let's say the choices over 20-25 years were fully funding the parents' IRAs, or building up home equity, or saving money for the kids' educations in their 529 plans. </p>
<p>Which would be the smarter moves under today's policies and procedures?</p>
<p>It would be a hassle in that, if reported to the college, it would be collected has tuition, or considered as an asset when formulating your financial aid package (i.e., you'll get less or no scholarship/grant/freebie). This would be true for most colleges who formulate packages to "meet demonstrated need."</p>